Pudential VA Daily Highest 7
What do you guys think of this product as compared to ING with the qrtly resets as compared to Pru daily resets?
Quarterly reset catches highest value 6% of the time, Prudentials HD7 captures 100% of the time. 16 asset allocation portfolios of which 90% beat their benchmark in 2007.
I like the 7 year principal guarantee Gro Plus for 35 bps, can use over 60 subaccounts for that one.
The Xtra credit 6 has 6.5% bonus for no additional fee compared to some other Va's that charge, not sure about ING's. Pru has 100 subaccounts including Profunds leveraged Bull/ Bear as well as a hedge fund, many sector funds as well.
HD7 cost is .60 for single, .75 joint, ING is .75 single, .95 joint (I think). You can add and cancel pru's riders 2X per year, but can only cancel ING' on free look. Maximum annual withdrawal for pru is up to 8%, it's 7% with ING.
Are you able to use UIT-style sub accounts like First Trust in the Pru product?
Here you go Snaggs-
Can't use for HD 7 or Gro(Return of premium) guarantees.
Classic ProFunds VP
Ultra ProFunds VP
Inverse ProFunds VP
Sector ProFunds VP
Oil & Gas
U.S. Government Plus
Rising Rates Opportunity
OOps, my bad. Snaggletooth asked for First Trust info, not profunds. Here you go-
First Trust Target Focus Four
First Trust DowSM DART 10
First Trust DowSM Target Dividend
First Trust Global Dividend Target 15
First Trust NASDAQ® Target 15
First Trust S&P Target 24
First Trust Target Managed VIP
First Trust Value Line® Target 25
AST First Trust Balanced Target
AST First Trust Capital
AST UBS Dynamic Alpha
Can you go 100% into First Trust?
Also, when the market was down and some of the account was moved to a fixed bucket, did it help or hurt the overall portfolio? I would worry that they would be late to getting you back into equities.
Can't use 100% First Trust for HD7 but can use the First Trust Asset Allocation portfolios.
Can't use the following First Trust portfolios for the return of premium guarantee:
Value Line(R) Target 25
NASDAQ(R) Target 15
See page 17 of prospectus.
As for the fixed bucket allocation, they have a history available. Frankly I've been surprised at how quickly they move back into equities.
And who says VA's are confusing? Aren't those guarantees only used if you annuitize the contracts, which nobody ever does?
Yes VA's can be confusing, however to be an excellent adviser requires our understanding of complex problems as well as potential solutions to those problems. It is our job as advisor's to be aware of these solutions, and communicate them effectively to clients.
Unlike the annuities of yesteryear, the new breed of living benefits does not require annuitization.
So you seem to favor the Pru version. I have seen the daily step up feature advertised a lot but I have no idea who my wholesaler is. How would you explain this VA to Joe Six Pack who is about to retire